Ethereum fundamentals diverge from its price – Is this a bottom signal?

Ethereum’s fundamentals have been strong, despite the extended price consolidation observed since late 2025. In fact, according to Altcoin Vector, the altcoin section of the analytics firm Swissblock, the chain recently reached a record of 2.88 million transactions. 

This could be perceived as massive network usage and broader activity, but Altcoin Vector cautioned that 80% of the activity was “systematic noise” and not high quality. The firm cited recent scaling efforts as the “unintended” impact of cheaper, lower-quality transactions. 

Source: Altcoin Vector/Swissblock

Ethereum staking and tokenized markets explode

However, other network fundamentals have seen solid growth too. Ethereum staking, for example, crossed 30% for the first time, indicative of a strong appetite for yield and securing the network. 

On the tokenization boom, inclusive of stablecoins, BlackRock recently noted that Ethereum controls over 65% of the overall tokenized real-world asset (RWA) market.

Source: BlackRock

According to the world’s largest asset manager, if the traction continues, it could be beneficial to chains like Ethereum. 

Away from the on-chain fundamentals, there has also been consistent institutional demand for ETH over the past few quarters. Ethereum treasuries, for example, bought 1.2 million ETH in Q4 2025 – A whopping 26% increase on a quarter-to-quarter (QoQ) basis, according to Bitwise. 

Source: Bitwise

Despite solid network traction, Ethereum’s [ETH] price was barely holding above $3k at press time. It was down 40% from the record level of $4.9k hit in 2025. 

For Bitwise CIO Matt Hougan, however, the “divergence” between price and fundamentals might mean a market bottom is close. 

“That’s the kind of divergence you get at the bottom of bear markets, when sentiment is down, but fundamentals are up. The last time we had such high-contrast data was Q1 2023—after which crypto prices soared for the next two years.”

Will ETH price follow fundamentals?

According to Altcoin Vector, for ETH to maintain its mid-term bullish prospect, the $3,050-level must be reclaimed and defended as support. If so, the upside targets would be $3,250 and $3,650. 

Source: X/Altcoin Vector

Otherwise, stalling below $3k could embolden bears to drag the altcoin to $2.600, analysts at Altcoin Vector warned. 

“Bearish perspective: Consolidating a new downward market structure below this pivot could pave the way for a move toward lows under $2,600.”

Final Thoughts

• Ethereum’s transactions hit a record high of 2.8 million, but most of them were ‘systematic noise.’ 
• Despite strong network traction on the staking and tokenization fronts, ETH’s recovery could be confirmed only if $3,050 is reclaimed as support.